Major technology and defense companies including Palantir, Nvidia and Booz Allen Hamilton are restricting or considering ending their use of advanced AI modelsunless providers including Anthropic and OpenAI offer stronger guarantees that sensitive corporate data and intellectual property will not be retained or misused.
Palantir has pressed Anthropic for irrevocable zero-data-retention guarantees before offering its latest model through Palantir’s software. Nvidia is limiting Anthropic’s models to less-sensitive work and using its own Nemotron models for proprietary projects, while Booz Allen has barred employees from using Anthropic’s commercial model for cybersecurity work involving proprietary software.
In June, Anthropic changed its data policy to retain usage logs for 30 days to help detect complex attacks spanning multiple sessions. Anthropic and OpenAI both say they do not train their models on customer data by default unless customers opt in.
John Strand, Owner, Black Hills Information Security, Inc.:
“This is kind of insane, and it reminds me a lot of what happened with cloud computing years ago. When companies started moving to Microsoft and Google cloud services, there was an outcry. People were saying, ‘Our data isn’t on our servers anymore. It’s on Google’s servers.’ Eventually, that died down. People got used to the reality that their data was going to be stored in the cloud.
“I think AI is having a very similar moment. People are looking at Anthropic and OpenAI and getting upset about 30-day log retention policies. You can scream and thrash about that all you want, but the reality is that logging is a fundamental part of security and data governance. We keep transactional database logs. We keep email and activity logs in systems like Microsoft Purview. Organizations have requirements to maintain these records for security, auditing, governance, and accountability.
“When I look at Anthropic’s response in particular, it feels like they’re trying very hard to make sure these transactional logs exist for security and accountability.
“And if your data is so sensitive that even that level of retention is unacceptable, there is another option. Run open-weight models locally on infrastructure you control. That’s exactly what we do for particularly sensitive activities.
“Logging and analysis have always been critical parts of security. AI doesn’t suddenly change that.”
Steven Swift, Managing Director, Suzu Labs:
“Organizations who prefer the old zero retention guarantees are likely to get stuck using older models. Anthropic and other labs have very publicly been fighting against wide scale misuse of their products. In order to meaningfully find and fix novel abuse techniques, it is essential that Anthropic maintain logs for a period of time. Its basically not possible to build adequate safeguards without such logs.
“I would expect that as time goes on, that all newer models carry with them the same standard data retention requirement. As time goes on, organizations will slowly get used to the 30 day retention window. It seems likely we’ll see the 30 day retention expanded to include older models as well. Especially where some of the older models clearly don’t have the same sorts of safeguards in place, making abuse on these older models more prevalent.
“There isn’t much upside for any of the frontier labs to offer true zero retention usage of their services. They already offer a guarantee that the data retained during the 30 day window won’t be used for model training.”
Donald McFarlane, Board Member, Xcape Inc.:
“We need to stop treating digital information as something people or businesses surrender simply because they place it in someone else’s custody. We should treat that relationship for what it is: a digital bailment.
“Possession is not ownership. When I entrust proprietary code, business records, personal information, or other unpublished material to a cloud or AI provider, that must be deemed to create duties much like a traditional bailment: use it for the agreed purpose, protect it, and do not retain, repurpose, sell, or disclose it beyond that purpose.
“AI makes this especially important because aggregation magnifies the risk. Thousands of individually mundane interactions can collectively reveal extraordinarily sensitive information about a person or company.
“Moving our papers from a desk drawer or filing cabinet into the cloud, including into the memory and logs of an AI model harness, should not strip away our property rights or make it easier for government to obtain them without proper legal process.”
Claudionor Coelho, Senior Advisor, Ridge Security:
“There is a discussion on whether OpenAI used data or meta-data to accelerate and anticipate the proof of Navier Stokes equations.
“In addition to that, Anthropic announced recently it is opening several verticals (like biotech, finance, etc). That raises the questions on whether any company’s data or meta-data are being used by the foundation labs, if not to train their models, at least using meta-data to help make decisions on which verticals to enter.”
I have been saying for a while that AI doesn’t have safety and guardrails and corporations are deploying AI without safety and guardrails in place. Maybe this will change things. One can hope.
Related
This entry was posted on September 16, 2026 at 8:27 am and is filed under Commentary with tags AI. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
Palantir, Nvidia and Booz Allen restrict AI models over data security concerns
Major technology and defense companies including Palantir, Nvidia and Booz Allen Hamilton are restricting or considering ending their use of advanced AI modelsunless providers including Anthropic and OpenAI offer stronger guarantees that sensitive corporate data and intellectual property will not be retained or misused.
Palantir has pressed Anthropic for irrevocable zero-data-retention guarantees before offering its latest model through Palantir’s software. Nvidia is limiting Anthropic’s models to less-sensitive work and using its own Nemotron models for proprietary projects, while Booz Allen has barred employees from using Anthropic’s commercial model for cybersecurity work involving proprietary software.
In June, Anthropic changed its data policy to retain usage logs for 30 days to help detect complex attacks spanning multiple sessions. Anthropic and OpenAI both say they do not train their models on customer data by default unless customers opt in.
John Strand, Owner, Black Hills Information Security, Inc.:
“This is kind of insane, and it reminds me a lot of what happened with cloud computing years ago. When companies started moving to Microsoft and Google cloud services, there was an outcry. People were saying, ‘Our data isn’t on our servers anymore. It’s on Google’s servers.’ Eventually, that died down. People got used to the reality that their data was going to be stored in the cloud.
“I think AI is having a very similar moment. People are looking at Anthropic and OpenAI and getting upset about 30-day log retention policies. You can scream and thrash about that all you want, but the reality is that logging is a fundamental part of security and data governance. We keep transactional database logs. We keep email and activity logs in systems like Microsoft Purview. Organizations have requirements to maintain these records for security, auditing, governance, and accountability.
“When I look at Anthropic’s response in particular, it feels like they’re trying very hard to make sure these transactional logs exist for security and accountability.
“And if your data is so sensitive that even that level of retention is unacceptable, there is another option. Run open-weight models locally on infrastructure you control. That’s exactly what we do for particularly sensitive activities.
“Logging and analysis have always been critical parts of security. AI doesn’t suddenly change that.”
Steven Swift, Managing Director, Suzu Labs:
“Organizations who prefer the old zero retention guarantees are likely to get stuck using older models. Anthropic and other labs have very publicly been fighting against wide scale misuse of their products. In order to meaningfully find and fix novel abuse techniques, it is essential that Anthropic maintain logs for a period of time. Its basically not possible to build adequate safeguards without such logs.
“I would expect that as time goes on, that all newer models carry with them the same standard data retention requirement. As time goes on, organizations will slowly get used to the 30 day retention window. It seems likely we’ll see the 30 day retention expanded to include older models as well. Especially where some of the older models clearly don’t have the same sorts of safeguards in place, making abuse on these older models more prevalent.
“There isn’t much upside for any of the frontier labs to offer true zero retention usage of their services. They already offer a guarantee that the data retained during the 30 day window won’t be used for model training.”
Donald McFarlane, Board Member, Xcape Inc.:
“We need to stop treating digital information as something people or businesses surrender simply because they place it in someone else’s custody. We should treat that relationship for what it is: a digital bailment.
“Possession is not ownership. When I entrust proprietary code, business records, personal information, or other unpublished material to a cloud or AI provider, that must be deemed to create duties much like a traditional bailment: use it for the agreed purpose, protect it, and do not retain, repurpose, sell, or disclose it beyond that purpose.
“AI makes this especially important because aggregation magnifies the risk. Thousands of individually mundane interactions can collectively reveal extraordinarily sensitive information about a person or company.
“Moving our papers from a desk drawer or filing cabinet into the cloud, including into the memory and logs of an AI model harness, should not strip away our property rights or make it easier for government to obtain them without proper legal process.”
Claudionor Coelho, Senior Advisor, Ridge Security:
“There is a discussion on whether OpenAI used data or meta-data to accelerate and anticipate the proof of Navier Stokes equations.
“In addition to that, Anthropic announced recently it is opening several verticals (like biotech, finance, etc). That raises the questions on whether any company’s data or meta-data are being used by the foundation labs, if not to train their models, at least using meta-data to help make decisions on which verticals to enter.”
I have been saying for a while that AI doesn’t have safety and guardrails and corporations are deploying AI without safety and guardrails in place. Maybe this will change things. One can hope.
Share this:
Like this:
Related
This entry was posted on September 16, 2026 at 8:27 am and is filed under Commentary with tags AI. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.